Such reports would tell the ISP customers that their Web activity is being monitored, inform them of ways to find legal online content, such as through paid services, and alert them that they could face legal action as a result of infringing copyright.

Under Ofcom's draft code, ISPs would also be required to keep records of how many reports have been sent to each subscriber, otherwise known as the "copyright infringement list," which signals the introduction of the three-strike system.

Once an Internet user has been placed on the copyright infringement list and has been notified three times in a year, copyright owners will be able to seek a court order to uncover the user's personal details in order to begin legal action against them.

However, Internet users will be able to appeal each report at a cost of 20 pounds ($31) -- which will be refunded if they are successful.

ISPs, which must contribute 75 percent of the cost of running the plan, could also be required to take practical steps against repeat offenders including limiting their broadband speed, or even suspending their account altogether. However, such measures would require additional legislation, according to Ofcom, and could only be considered following a year of sending out notification letters.

The U.K.'s largest broadband providers -- including BT, Everything Everywhere, O2, Sky, TalkTalk Group, and Virgin Media -- which account for more than 92 percent of all U.K. broadband subscriptions between them -- will all have to adhere to the code once it comes into force.